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Menlo Company
Contribution Income statment
Menlo Company distributes aSINGLE product. The company’s sales and expenses for
last month follow:
Solution
1. Break Even Point:
In Units: BEP = Fixed Cost / Contribution Per Unit
Fixed Cost = $148,800
Contribution Per Unit = Sales - Variable Cost
Contribution Per Unit = 40- 28 = $12
BEP in Units = 148,800 / 12 = 12,400 Units
BEP in $ = BEP in units x Selling Price Per Unit
BEP in $ = 12,400 x 40 = $496,000
2. Contribution Margin at Break Even:
Contribution Margin at Break Even is equal to Total Fixed Cost = $148,800

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Ad by DealsFactor - Close Menlo Company Contribution Income.docx

  • 1. Ad by DealsFactor | Close Menlo Company Contribution Income statment Menlo Company distributes aSINGLE product. The company’s sales and expenses for last month follow: Solution 1. Break Even Point: In Units: BEP = Fixed Cost / Contribution Per Unit Fixed Cost = $148,800 Contribution Per Unit = Sales - Variable Cost Contribution Per Unit = 40- 28 = $12 BEP in Units = 148,800 / 12 = 12,400 Units
  • 2. BEP in $ = BEP in units x Selling Price Per Unit BEP in $ = 12,400 x 40 = $496,000 2. Contribution Margin at Break Even: Contribution Margin at Break Even is equal to Total Fixed Cost = $148,800